Financial Loss or Gain?

The encouragement of people to engage with the lifelong learning theme nevertheless places a duty on individuals to take responsibility for self- development of their intellectual potential with the promise that they could “change their lives” (Fryer, 1997). This duty to respond has undertones of right; moral expectations to “be all you can be”. It also demands that those responsible for the delivery of such programmes provide accompanying support. Clothed in caring speech with undertones of a paternalistic government (Universities-Scotland, 2002b), the message nevertheless disguises the selling of an industry supplying employment market needs.

Where an improvement in employment status is an expectation of participation in HE, and if there is to be a measure in terms of gain, then the diversification of the student profile has to be matched by a similar move on the part of employers to promote willingness to employ non-traditional graduates (following on from the reasonable adjustments already demanded from the universities as discussed in Chapter 4). Employer ageism has, however, been documented as rife (DfEE, 1997

in Kirkton and Greene, 2005:105). A contemporary, positivist, study undertaken by Purcellet al(2007) supports original findings (from the mid 1990s) which analysed graduates entering the labour market. Purcell found Mature students have a more difficult time finding appropriate employment than traditional graduates or those from other diverse backgrounds. Sennett (2006) reminds us that hiring a Mature graduate will involve a greater investment by the management; younger graduates are more likely to have the freedom of life circumstances and so will move on. Therefore the commitment of “trying them out” is a safer bet for an employer. However, given the geographical responsibilities (childcare, financial investment in housing etc.) the roots of Mature students will be less free to move. If a Mature graduate is awkward, challenges authority, is less likely to be malleable in terms of managing, the employer may find it difficult to terminate their contract or persuade them to move on (Sennett, 2006).

Prior to the Post-1992 university expansion, many young people entered apprenticeships and skills development courses directly related to craft training. Post-1992, however, an increasing number of these are entering universities and undertaking courses which will leave them less specifically trained for particular employment, but with widely expanded aspirations and expectations for their employment prospects. Employers face higher numbers of people now equipped with degrees in the liberal arts (Social Anthropology, Psychology, Film and Media studies), where in the past, by aged 21 years, they would have been trained in, for example, electrical and joinery work. This has led to accusations of Scotland producing too many graduates with the wrong sorts of capabilities for Scottish business:

“The UK is producing too many graduates and the demand for “knowledge workers” has been severely overestimated, leading academics have claimed.” (The Independent, 22ndJuly 2004).

“More than half of employers believe that the UK is producing too many graduates and that the rise in student numbers has led to a dumbing down of standards.” (Association of Graduate Recruiters’ Survey, 20thJanuary, 2004)

However, Futureskills Scotland (research commissioned jointly by Scottish Enterprise and the Highlands and Islands Enterprise) disputes the public doubt. In their 2006 report they demonstrated clear support for the government agenda. This study related five indicators of labour of those in market performance (working, registered unemployed, graduate trainees, temporarily employed and working part- time) and the graduate wage premium. Clear evidence was found of the demand of graduates having kept pace with the supply of graduates in all five categories. The last category, the graduate wage premium started to decline in England since 1995. However, even in this category the Scottish finding was positive with maintenance of the rate over that time period (Futureskills Scotland, 2006).

At first glance this would seem to be excellent news. However, some areas were not addressed by the report, namely the rate of return of the study experience to the individual both in terms of monetary cost and of value–added life experience (Futureskills Scotland, 2006). Some companies have recently adopted a company policy of employing people past retirement age (for example, B & Q). However these are new initiatives highlighting the value of life experience available in these people and so, on those terms, they are a different type of qualified older person from those who are recent graduates in subjects relatively new to them.

For Mature students, the study choice is important. If expected to equip them with appropriate qualifications for employment, a system of personal academic advising at the application, entrant and re-advising stages is crucial. Being able to recoup the financial cost of the study programme requires careful subject and career advising, especially given some geographically static restrictions. This is still feasible in an institution focused on creating thinkers and not on vocational courses but it is imperative that Ancients recognise that a clash of purposes is central to the tension between unemployed graduates and institutions.

The personal investment of the student is significant enough for the status of customer to be very real, whether or not this is readily accepted or consciously acknowledged by the academic community. The majority of individual student funding is currently through a student loan scheme, which carries long-term implications for the individuals. The inability of many students to gain work that is acceptable to their aspirations once they have a degree, regardless of their capability to do such work or, in the case of Mature students, the willingness of employers to employ them regardless of directive legislation, often results in loans not being repaid and in the opposite of Sennett’s “usefulness” (2006). This situation leads us to potentially greater, though to some extent hidden, costs to society and our HE system, not to mention the psychological costs to the students themselves. It also leaves the retrospective evaluation of the experience by recent graduates struggling to find work often tainted in negativity.

In 2005 the first doubts to the financial benefits of a university degree were cast in the press (Schofield, 2005) when studies estimated graduates’ lifetime earnings at just £140,000 over those without a degree. This varied in accordance with the vocational aspect of the degree, with liberal arts degrees benefits dropping to as low as £22,000. This was a considerable difference over figures produced 20 years earlier but was reinforced recently with similar figures of an average £160,000 and as low as £1,000 for Arts degrees (Henry, 2007). Naylor et al (2002), taking the equation between degree and financial return further, links greater reward with degrees from higher league table universities and actually calculates the percentage increase for higher classifications of degree (first class 12% over third class).

Mature students clearly tend to have fewer years of earnings to recoup the cost of study so the equation is much less secure for them. If the financial and employment benefits are so insecure, other gains have to be investigated. Why else would someone go to university, given the circumstances discussed above?